Preliminary results for the year ended 28 January 2012
22 March 2012
2011/12 TRADING REVIEW
|Sales £m||2011/12||2010/11||% Reported Change||% Constant Change||% LFL
|Retail profit £m||2011/12||2010/11||% Reported Change||% Constant Change|
France comprises Castorama and Brico Dépôt
All trading commentary below is in constant currencies
Kingfisher France continued to outperform the market with self-help initiatives driving sales ahead 4.8% to £4.5 billion (+3.7% LFL, +4.0% on a comparable store basis). According to Banque de France data, sales for the home improvement market (1) were up 2.7%. Across the two businesses, two new stores were opened, four were relocated and two revamped, adding around 2% new space.
Retail profit grew by 20.0% to £423 million driven by the strong sales growth, higher gross margins (+60 basis points) from increased direct sourcing and continued buying optimisation benefits and a £7 million one-off release of a provision no longer required.
Castorama total sales grew by 3.9% to £2.4 billion (+3.2% LFL, +3.6% on a comparable store basis) supported by continued progress with its store modernisation programme (2/3 of total selling space now completed), new range introductions and the innovative 'Do-it-Smart' marketing campaign aimed at making home improvement projects easier for customers.
Sales across outdoor and indoor categories were up a similar amount with sales of new decorative, bathroom and storage ranges, supported by new catalogues, performing particularly well.
Brico Dépôt, which more specifically targets trade professionals and heavy DIYers, delivered total sales growth of 5.9% to £2.1 billion (+4.4% LFL). The trade market(2), improved by 3.9% compared to the prior year following a pick-up in new housing starts and planning consents.(3)
Self-help initiatives to drive sales and footfall continued to progress well including a continued extensive programme of range refreshment, more 'arrivages' promotions (rolling programme of one-off special buys) and the re-launch of the Brico Dépôt 'Le Book' pocket-sized catalogue early in the year to reinforce Brico Dépôt's value credentials. New ranges introduced last year (e.g. kitchen and power tools) performed particularly well (+5% LFL).
- Banque de France data (Feb 2011- Jan 2012) including relocated and extended stores, excludes heavier trade market.
- Private building market Jan-Dec 2011 according to UNIBAL
- Service de l'observation et des statistiques Jan 2012